Customer Interview: Using Decision Management to Motivate Sellers
Vijay Pandiarajan 270003VJ4Q firstname.lastname@example.org | | Tags:  business-rules-management... rule-governance operational-decision-mana... sales-commissions business-rules sales-compensation
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I was recently talking to William Wada who runs IT operations for Magazine Luiza, one of the largest retailers in Brazil. We discussed the huge, but necessary, challenge of setting up and managing a sales commissioning system for each of their 600+ locations in order to keep sellers happy and reward profitable selling behaviors.
Listen to my conversation with William, especially if you’re facing a sales commissioning challenge. During this 7-minute podcast we discuss Magazine Luiza’s new sales commissioning system that uses expert decision automation to drive the right incentives for their sellers. During our interview, William covers the following points:
My take on it: Choosing and implementing the right compensation and commissioning system is key to having a high performance sales team. Depending on how it’s executed, it can galvanize indifferent sales staff to take a more consultative sales approach instead of badgering or ignoring customers. It can make such a difference that even those retailers that don’t pay commissions have other rewards for top sellers, such as more hours on the sales floor.
Given this tight linkage between sales compensation and performance, I can pretty much tell how sales personnel are compensated by how I’m approached when I enter a store -- are they keen to understand why I’m there or do they lead with the weekly specials; are they pushing accessory or warranty pitches right after I buy a big-ticket item? Or are they chatting among themselves, too busy to talk to me at all? More often than not, seller behavior reflects how they’re compensated and how well that’s communicated, and it gives you a glimpse into the company’s overall strategy as well. Seller motivation ultimately affects the shopping experience and the store’s ability to generate top line revenue.